Entry method using MACDHistogramCrossover


2019 Donor
I have been lurking this site for a while and have found a bunch of helpful things. I want to give back a little.

So this is not really a strategy but more of a complementary piece to the puzzle. It helps me define optimal entry points.

I use the macdhistogramcrossover indicator that is already built into the thinkorswim database.

My settings are :

fast length: 3

Slow length: 6

macd length: 9

set to exponential for the average.

I place two of them on the chart 1 for up signal 1 for the down signal.


*I try to avoid entries on very large bars. I either want to enter on a normal size to smaller candle or opposite color (green for down arrow, red for up arrow)

chart is just an 18 ema with heiken ashi bars. looking for trend continuation or reversals
@jezzer47 very nice idea, thank you for sharing. Could you add to your post by sharing your chart, and list the timeframe chart you generally use and do you day, swing, or longer-term trade?
@jezzer47 very nice idea, thank you for sharing. Could you add to your post by sharing your chart, and list the timeframe chart you generally use and do you day, swing, or longer-term trade?

NP. I will post a chart later, but will elaborate now.

I guess you can call it trend trading as I only follow the current trend. I use what is called a bounce or sling shot method. Depending on what instrument is traded is how I use timeframe. This can work on any and all timeframes but I will add the higher the time frame the greater the accuracy and bigger the move.

I use an 18 or 20 ema and a Macd to figure out direction. My macd setting is 50/100/9 as it gives me a broader view of momentum up or down.

But as I said the point of the post was for timing entries. I believe no matter what strategy is used once the macd of 3/6/9 crosses in either direction should be a good entry point as it is signaling momentum on a micro level (short term) basis.

will post chart later.
Interesting concept - aren't we always looking for some kind of confirmation of our trade idea. Our brains are so wired to see a feel good arrow pointing towards the treasure. I overlaid your idea with impulse and TTM scalper alert. They line up pretty ok - I like impulse on a 1hr to show trend strength for 5 min trading.
"I try to avoid entries on very large bars. " interesting observation - by the time you get a signal on a large bar that large bar has formed already - so I guess waiting for a pullback after that large bar, or as you said just enter on a normal sized bar.
Sometimes I set ATR to 1 and histogram. Renders a good visual (at least for me) what a normal bar should look like and how frequent large bars are formed.

Join useThinkScript to post your question to a community of 21,000+ developers and traders.

Not the exact question you're looking for?

Start a new thread and receive assistance from our community.

87k+ Posts
410 Online
Create Post

The Market Trading Game Changer

Join 2,500+ subscribers inside the useThinkScript VIP Membership Club
  • Exclusive indicators
  • Proven strategies & setups
  • Private Discord community
  • ‘Buy The Dip’ signal alerts
  • Exclusive members-only content
  • Add-ons and resources
  • 1 full year of unlimited support

Frequently Asked Questions

What is useThinkScript?

useThinkScript is the #1 community of stock market investors using indicators and other tools to power their trading strategies. Traders of all skill levels use our forums to learn about scripting and indicators, help each other, and discover new ways to gain an edge in the markets.

How do I get started?

We get it. Our forum can be intimidating, if not overwhelming. With thousands of topics, tens of thousands of posts, our community has created an incredibly deep knowledge base for stock traders. No one can ever exhaust every resource provided on our site.

If you are new, or just looking for guidance, here are some helpful links to get you started.

What are the benefits of VIP Membership?
VIP members get exclusive access to these proven and tested premium indicators: Buy the Dip, Advanced Market Moves 2.0, Take Profit, and Volatility Trading Range. In addition, VIP members get access to over 50 VIP-only custom indicators, add-ons, and strategies, private VIP-only forums, private Discord channel to discuss trades and strategies in real-time, customer support, trade alerts, and much more. Learn all about VIP membership here.
How can I access the premium indicators?
To access the premium indicators, which are plug and play ready, sign up for VIP membership here.